The game features three levels through which the player's movement is automated on a predetermined path. It is the player's job to shoot the criminals that appear before time runs out and they shoot back. Along the way there will be various objects in the background that can be broken if shot, some of which will reveal power ups afterwards. At the end of each level there is a boss battle, as well as one extra final boss battle after all three levels have been finished.

Two years later, this cop has grown up with his partner, James Cools and a newcomer cop, Janet Marshall. He could do better than anyone else, including his part-time job and his duty training. He is known to be a quick draw when things get underfire. Rage is an all-around character in the game.

Like his partner, Michael who worked the same side for the good as well as he does, this doesn't stop him from beating by some bad guys. Although Rage is quicker on the draw in a gunfight, Smarty is known to be the top shot in the police force.

During the events of the first, the original Virtua Cops, Michael "Rage" Hardy and James "Smarty" Cools shut down the E.V.I.L Inc. criminal empire. Three of its leaders, King, Boss, and Kong are all in the maximum security federal pen. And the final, fourth member of the E.V.I.L Inc. gang, international terrorist Joe Fang is believed to have been killed in a helicopter crash, though his body was never found. After the downfall of E.V.I.L Inc., a comprehensive investigation of their black market and gun-running activities was launched in the Virtua City bank.

Last year it looked as though the Virtua Squad had finally put an end to the E.V.I.L Syndicate’s reign of crime over Virtua City. The gangleaders were all either behind bars, in intensive care, or under 6 feet of dirt. And the Virtua City Police Special Investigations Unit got a new member in the shape of Janet Marshall, an expert in criminal psychology profiling.

Then trouble started brewing in unlikely places.... The vice-president of the Virtua City Bank was killed in shady circumstances that were only officially termed "accidental". And the swollen accounts of the now-defunct E.V.I.L Syndicate, which he had been suspected of laundering, were emptied overnight. The missing funds amounted to more than the GNP of most small countries.

Meanwhile, on the other side of town, alarms break the quiet and calm of the Virtua City air. A daring daylight raid on the biggest jeweler’s in the state! And at the site of the new subway construction, there’s been an unusual amount of unexplained activity involving some very suspicious-looking materiel. Looks like the E.V.I.L is reborn.

The newly reformed E.V.I.L threatening the peace and safety of Virtua City. Its new leaders are currently unknown. Can they be allowed to continue their fiendish reign of terror?

Stage 1: Beginner: You interrupt a jewelry heist in progress, and follow the thieves in a running car-chase firefight.

Boss: Bobbie Louise, the leader of the assault on the jewelry store downtown. Bobbie Louise is one big customer, but don’t be fooled - he’s no slowpoke.

Stage 2: Medium: Rescue the mayor of Virtua City from vicious kidnappers. Follow them to their hideout in the yacht harbor, and blast them off the Fiesta Deck.

Boss: Aero-Divers, a high-tech paramilitary unit calling the shots in the mission to kidnap the Virtua City mayor. They prefer aerial combat tactics that make full use of the maneuverability afforded by their rocket belt packs. They swarm all over their opponents in overwhelming group formations.

Stage 3: Expert: Pursue the crooks into the subway system, and even deeper into the heart of the Virtua City underground. Destroy the subterranean terrorist HQ.

Boss: Garse Bradley, the commander of a paramilitary terrorist organization, Bradley has a secret underground base in the bowels of Virtua City. Caution is advised in dealing with this heavily armored commando. Garse’s favorite is a tank which he will use against the cops.

Final Stage: The stage is one final battle against the main villain.

Final Boss: The Mastermind, the man behind the recent chain of events and resurrected E.V.I.L. Nothing much is known about him, except he has a nasty grudge against the Virtua Cops. He is using a high-tech rocket belt pack similar to that of Aero-Divers.

A combat training simulator, known as the “Proving Ground" simulates a variety of life-threatening situations. Each Proving Ground stage is designed to simulate a hostile urban environment thronging with enemies. The goal of each stage is to blast through the crowd of thugs while hunting down and taking out the rival player.

In 1997, former Games World Videator and future videogames journalist Martin Mathers appeared on the British videogames television show GamesMaster and participated in a challenge to complete a stage on two separate Virtua Cop 2 cabinets at the same time. Mathers ultimately failed the challenge after shooting a bystander and losing a life. This challenge can be seen on the GamesMaster DVD given away on the tenth anniversary issue of GamesMaster magazine in 2003.